Monday, May 10, 1999 Published at 14:49 GMT 15:49 UKUK PoliticsLeaders in face-to-face coalition talksFormal talks are continuing between the leaders of Scotland's Labour and Liberal Democrat parties aimed at establishing a coalition government at Holyrood.

Scottish Secretary Donald Dewar and Jim Wallace and their negotiating teams are sitting round the table in Edinburgh.

BBC Scotland Political Editor Brian Taylor says he does not expect a breakthrough on Monday and that the talks are likely to continue into the week.

Over the weekend there were some signs of friction between the two sides, as they began informal moves towards negotiations for a power-sharing administration in the new parliament.

The party's campaign manager Michael Moore said: "Tuition fees was a big part of our manifesto, and Jim Wallace made it very clear throughout the campaign that we wish to be party of the majority that wants to see an end to those tuition fees."

But Labour sources have indicated that the basis for any negotiations will be the party's manifesto, warning that its education plans could be threatened if tuition fees were scrapped at a cost of £40m.

Wednesday is swearing-in day for all members of the new Scottish Parliament before a secret ballot for the presiding officer and his two deputies.